A “yang line” usually means the close is above the open for that candle, and a “yin line” usually means the close is below the open. That is not the same as saying the stock rose or fell versus yesterday’s close. A green/yellow/red color rule also depends on the charting software.
One candle is four prices and one time period
The cTrader candlestick chart guide explains that a candlestick represents open, high, low and close for a selected period. That period can be one minute, one day, one week or another cycle, so do not mix a daily candle with an intraday candle.
| Sample daily candle | Price | Reading |
|---|---|---|
| Open | 10.00 | Body starts here |
| High | 10.80 | Upper wick reaches here |
| Low | 9.60 | Lower wick reaches here |
| Close | 10.30 | Close is above open, so it is a yang candle in the usual Chinese reading |
If yesterday’s close was 10.50, this candle is still a yang candle but the stock closed lower than yesterday. The opposite can also happen: a yin candle can close above yesterday’s close if it opened even higher and then slipped.
Common shapes beginners ask about
- Long body: stronger movement between open and close, but still needs volume and context.
- Long upper wick: price was pushed down from the high.
- Long lower wick: price recovered from the low.
- Doji: open and close are very close; it often shows hesitation, not automatic reversal.
- Hollow/solid candles: some platforms use hollow bodies, red/green reversal, or China-style red-up/green-down settings. Check the legend first.
Use candles to ask better questions: where is support, what is the volume, what changed in the company or market, and what is your risk limit? The SEC asset allocation guide is a useful reminder that time horizon and risk tolerance matter; a single candle should not decide a trade.